National governments struggle to ensure people’s full economic participation and social inclusion across regions in Europe. Whether you look at income or wealth, inequality has been increasing in most European countries for the past two decades.
Though historically Western European countries had maintained relatively low levels of income inequality thanks to strong social welfare systems, several have seen a significant increase over the past 20 years. To understand better how income inequality has increased, we can look at the Gini coefficient, where 0 represents perfect equality and 1 represents extreme inequality.
In Germany, the Gini coefficient increased from around 0.25 in the early 2000s to 0.29 in recent years. In Southern European countries like Spain, Italy, and Greece, there has been an increase in income inequality, particularly due to the impact of austerity measures and unemployment following the financial crisis. In Eastern European countries, income inequality has also increased notably. For example, Poland saw its Gini coefficient rise from 0.26 in the early 2000s to around 0.30 in recent years. Hungary and Romania also experienced similar patterns, with income inequality rising due to shifting labour markets and economic restructuring.
The top 10% of wealth holders in Europe hold about 50-60% of total wealth, while the bottom 50% holds less than 5%. Countries like France and Germany have seen rising wealth inequality, partly due to real estate appreciation in urban areas. In Nordic countries like Sweden and Denmark, traditionally seen as more equal, the wealth gap has widened due to the increase in housing prices and financial market growth, benefiting those who already own capital.
Factors such as technological change, globalisation, austerity policies, and spiralling house prices have been contributing factors to growing inequality across Europe. Romania, for example, has one of the highest rates of child poverty and educational inequality in the EU. Many children from rural or low-income families lack access to quality education, and face disparities in school resources, teacher quality, and infrastructure compared to urban areas. Residents in Southern Italy face worse health outcomes compared to those in the North. This economic inequality also causes a ‘healthcare migration’, where people in the South need to travel to the North to receive adequate care, creating financial strain and emotional stress on families already living in poverty.
In this context, it is surprising that for the first time in history there has not been a proposal presented for a Social Affairs Commissioner to join the next European Commission. Since 1967 with Lionello Levi Sandri, there has always been a Social Affairs Commissioner. The post was initially seen as a way to connect with the working class and bring their voice to Brussels. With a strong employment component, it has evolved to reinforce social protection, protect the most vulnerable and support social inclusion. However, under the proposal for the new Commission, this important portfolio is now hidden behind a vague title, People, Skills and Preparedness, which feels far removed from the reality of millions of people who struggle every day to make ends meet. This jargon contributes to the Commission further losing touch with its citizens across Europe.
Fighting inequality, poverty, and exclusion, was the topic that Europeans highlighted should be the number one priority for the EU within the Eurobarometer of December 2023. The political choice of not including a Commissioner for Social Affairs is disappointing since President Ursula von der Leyen highlighted the implementation of the European Pillar of Social Rights (EPSR) as a key priority of her future Commission. However, by looking at such a wide portfolio there is a risk that the Pillar might become an empty box.
A Commissioner for Social Affairs plays a vital role in addressing inequality and protecting vulnerable groups such as older people, those with disabilities, unemployed people, or the many who are living in poverty. Shaping targeted social policies in Europe over the past two decades has helped to foster social cohesion within and across countries, which also contributes to economic development, particularly with regards to supporting the workforce.
Social services are key to implementing European social inclusion policies and principles, and they need a strong European framework that supports financing, the quality of services, the workforce, and a new model of care and support that responds to people’s needs, demographic change and social patterns.
At a time of growing inequality, a Social Affairs Commissioner is a key player to strengthen social protection and promote social inclusion within each country and across Europe as a whole. Therefore, the position of Social Affairs Commissioner should be restored as an autonomous portfolio.
An adapted version of this article was published by the EU Observer and is available here.
